Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 15 Sep
Source: Bse
Sonata Software Limited (SONATSOFTW)
Large CapIT stocks · Large cap · NSE
Sonata Software is a modernization engineering firm focused on transforming enterprises for speed, efficiency, and growth. It serves mid-caps (business heads/CXOs) and large caps (CIOs) with agile solutions across TMT, BFSI, HLS, and RMD verticals, leveraging proprietary IPs like Harmoni.AI.
Data qualityFresh enough for analysisQuote updated 21 Oct, 03:31 pm ISTDetails
Quote21 Oct, 03:31 pm IST
Base fundamentals14 Oct 2026 · screener
Latest result07 Aug, 02:24 am IST
Score21 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · IT P/E 21.4 (n=204)
Technical timing lens
Trend score and candlestick chart
55Neutralfull bear SMA stack · SMA20 -10.0% / mo · MACD + · sector +19.3pp vs Nifty 500 (3M)
Stock trend: 25
Sector RS: 100
Sector 3M: +13.7% vs Nifty 500 -5.6%
IT FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
SONATSOFTWD candles · FIT view-7.5%Latest close ₹240.50 on 2026-10-21
Bar
+0.0%
RSI
35
MACD hist
0.20
52W pos
17%
2026-10-21O ₹240.50H ₹247.00L ₹238.20C ₹240.50Vol 12.4L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
SONATSOFTWNifty ITNifty 500
- SONATSOFTW
- -20.5%
- Nifty 500
- -6.5%
- Nifty IT
- +12.0%
- Vs Nifty 500
- -14.0 pp
Chart stats
21 Oct 2026- From 52W high
- -40.0%
- 52W range position
- 17%
- ATR (14)
- 4.9%
- Volume vs 20D
- 0.88x
- Avg traded value
- ₹36.1 Cr
- 20D price channel
- ₹235.4 - ₹286.7
₹400.5
₹207.2 - ₹400.5
₹11.8
Latest completed session
20-session average
31.9% annualized volatility
Research snapshot
What the evidence says now
Investable fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend is neutral, and recent execution is mixed.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · UNDERVALUED66
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Bad0
Revenue +10.6% · PAT -0.9% YoY
Technical
Neutral55
Price trend and sector-relative-strength timing.
Valuation
Legacy model+54.6%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence79
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Bad · 0/100PAT -1% YoY · margin compression · Rev +11% YoY · +29% QoQ
Filed 06 Aug 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,279 Cr | +10.6% | +29.3% |
| EBITDA | ₹171 Cr | +6.9% | -18.2% |
| Operating margin | 5.0% | +0 bps | -300 bps |
| PAT | ₹108 Cr | -0.9% | -16.9% |
| PAT margin | 3.3% | -39 bps | -184 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 13.80
- P/B
- 3.68
- EV/EBITDA
- 9.00
- Market Cap
- 7005.00Cr
Profitability
- ROE
- 28.20%
- ROCE
- 30.70%
- ROA
- 9.29%
- Dividend Y
- 3.17%
Growth (CAGR)
- Revenue 5Y
- 20.00%
- EPS 5Y
- 16.00%
- Revenue 3Y
- 13.00%
- EPS 3Y
- 4.00%
Balance Sheet
- Debt/Equity
- 0.38
- Interest Coverage
- 12.97×
- Altman Z
- 4.74
- Book Value
- 67.90
Cash Flow
- FCF Yield
- 4.70%
- FCF Positive Y
- 10/5
- OCF
- 538.00 Cr
- EPS TTM
- 16.52
Shareholding
- Promoter Hold
- 28.17%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 22%
Financial History
Updated 20/10/2026
Revenue
₹ CrLatest: 1,367+37.9% vs prev
Net Profit
₹ CrLatest: 279+30.4% vs prev
Return on Equity
%Latest: 34.2+28.4% vs prev
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 35.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- Recent death cross (SMA50 crossed below SMA200).
- SMA20 falling (~11.1% over last month) — short-term momentum negative.
- RSI(14) at 35 — sideways, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 40% off 52W high · 16% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
11
RS percentile
Stage 1 Base / Transition
1M return
-12.5%
3M return
-22.6%
6M return
-10.6%
1Y return
-35.3%
RS 1D
-2
RS 20D
-23
Sector rank
#2
Industry rank
#5
Stage evidence
- Price is 12.9% below the 30-week proxy without full trend alignment.
- The 30-week proxy changed +0.2% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
50-DMA
price below
200-DMA
price below
Sector
leading
Industry
leading
Relative-strength line vs Nifty 500 (base 100)
262 observations
21 Oct 2026Value 72.98+1.28%
RS vs Nifty 50073
Valuation & peers
U-Score 66 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 66 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Financial Turnaround
Fundamental score breakdown
U band · UNDERVALUEDValuation15/30
Growth11/25
Quality17/20
Balance Sheet9/15
Cash Flow9/10
Piotroski
7/9 (+5)
Penalties
0
Raw sum
66
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
66/100 · legacy band UNDERVALUED
Positive drivers
- FCF yield is supportive at 4.7%.
- Piotroski is strong at 7/9.
- Fair-value margin of safety is positive at 54.6%.
Main drags
- Growth is weaker at 11/25; verify the latest quarterly trend.
- Valuation is weaker at 15/30; verify the latest quarterly trend.
- Balance sheet is weaker at 9/15; verify the latest quarterly trend.
Sector valuation model
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Primary lens
PE and EV/EBITDA relative to revenue growth, margins, and cash conversion.
Secondary checks
Deal pipeline, attrition, dollar revenue growth, FCF yield.
Main risk check
Low PE can reflect weak growth or margin pressure.
PE
13.8
PB
3.7
EV/EBITDA
9.0
ROE
28.2%
ROCE
30.7%
FCF Yield
4.7%
Debt/Equity
0.4
MoS
+54.6%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 21 Oct 2026
v4.3-runtime-valuation
Final score
66
Previous: 66
Legacy U-Score band
UNDERVALUED
Previous: UNDERVALUED
Margin of safety
+54.6%
Previous: +54.8%
Score history
12 stored score snapshots. Latest stored move: +0 points.
21 Oct 2026
v4.3-runtime-valuation
66
66
66
65
65
65
65
65
65
65
66
66
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹158.87
-51.4% MoS
Growth-justified P/E
32.1
Growth-justified Value
₹530.29
+54.6% MoS
PEG
1.23
Comparable companies
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
NEWGEN
Large
Newgen Software Technologies Limited
IT Services / Digital
match 167
63
19.8
19.6%
+32%
UNDERVALUED
MAPMYINDIA
Large
C.E. Info Systems Limited
IT Services / Digital
match 163
38
36.7
12.0%
-8%
WATCHLIST
SHILCTECH
Small
Shilchar Technologies Limited
IT Services / Digital
match 158
59
33.6
37.8%
-0%
FAIR VALUE
MPSLTD
Small
MPS Limited
IT Services / Digital
match 158
62
23.3
29.7%
+31%
UNDERVALUED
BSOFT
Large
BIRLASOFT LIMITED
IT Services / Digital
match 158
61
14.0
14.1%
+60%
UNDERVALUED
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-06-03T18:38:52.699Z
Management commentary snapshot
Consolidated PAT grew 25.0% QoQ and 9.3% YoY. International Services revenue grew 0.6% QoQ (reported) and 1.1% YoY (reported), with constant currency growth of 2.0% QoQ and 27.6% YoY. International EBITDA accretion was 0.7% QoQ and 1.5% YoY.
Sonata Software demonstrated strong sequential PAT growth and robust constant currency YoY growth in International Services, driven by strategic focus on Cloud & Data, AI, and large deal wins. High utilization and improving ROCE/RONW indicate operational efficiency. The shift towards modernization and AI-led solutions aligns with market demand.
Current business mix
International Services Revenue by GTM (Q4 FY26)
Latest issuer-disclosed distribution across 5 reported categories.
Cloud53.0%
Dynamic22.0%
Data15.0%
Emerging3.0%
Others7.0%
Growth engines
Large Deals
2 large deals won during Q4 FY26, with 43% of active pipeline consisting of large deals.
Cloud & Data
Cloud & Data pipeline is 57%; increased as a percentage of revenue from 52% to 65% in FY26.
AI & Modernization
AI Win of $13.7M; AI led Pipeline of $335M.
Verticals & Partnerships
Focus on MS Sell to, HLS, BFSI, TMT; AWS and MS Sell with.
Capacity and execution
New Capability Center
Extended engineering team with a new capability center in India for a large deal win.
New Office Launch
New office launch reinforcing growth and delivery capacity for a large deal win.
Tailwinds
Microsoft Partnership
30+ years of partnership, named in Inner Circle for Microsoft Business Application 2025-26, generating $650M+ per annum revenue to Microsoft.
Enterprise Agility Demand
Management's POV states the need to adapt and evolve will get faster, and enterprise agility will be key, hence demand outweighs efficiency in the mid-term.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
For IT services, both sequential (QoQ) performance indicates recent momentum and project execution, while annual (YoY) growth provides a broader view of business expansion and mitigates seasonality.
Sector KPIs management disclosed
Consolidated PAT Growth
25.0% QoQ, 9.3% YoY
International Services Revenue Growth (Reported)
0.6% QoQ, 1.1% YoY
International Services Revenue Growth (Constant Currency)
2.0% QoQ, 27.6% YoY
International EBITDA Accretion
0.7% QoQ, 1.5% YoY
Management forward view
Modernization Focus
Sonata will drive enterprise velocity for clients through AI-led business process transformation, industry solutions, legacy modernization, platform creation, and SaaS surround.
SITL Strategy
Three-pillar strategy for Sonata Information Technology Limited (SITL): Grow Core Reselling/Platform, Expand Managed Services, and India IT Services.
Sustainability Targets
Targeting Net Zero Emission by 2050, Single Use Plastic Free certified, and 100% Tier 1 suppliers ESG compliant.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Large Deals Pipeline | 43% of active pipeline consists of large deals; 37% with Fortune 500 clients. | Conversion rate and continued growth in large deal wins. |
| Cloud & Data Revenue Mix | Increased from 52% to 65% of revenue in FY26. | Further increase in the percentage of revenue from Cloud & Data services. |
| International Services Utilization | 91.8% in Q4 FY26. | Maintenance of high utilization rates while scaling operations. |
| AI Led Pipeline | $335M. | Conversion of AI-led pipeline into revenue and new AI-related deal wins. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
79Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 88th percentile of the scored universe and 84th percentile within IT. No major sub-score weakness stands out.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 21 Oct 2026
management-trust-v1
141 docs text-extracted · 50 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
88th percentile
overall median 67 · IT: 84th pctile, median 69 · Large: 74th pctile, median 73
Evidence depth
Financial-only
141 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Can support position sizing if valuation and trend also agree.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
78
strong · holding, pledge, alignment
Cash flow
77
strong · profit to cash conversion
Balance sheet
89
strong · leverage and solvency
Discipline
82
strong · capital discipline
Results
63
acceptable · quarterly consistency
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 4.7%.
- ▸10 years of positive FCF.
- ▸ROCE is 30.7%.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Sonata Software Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 8 Jul - Copy of Newspaper Publication of notice of 31st Annual General Meeting.
Source: Bse
Annual report
Reg. 34 (1) Annual Report. 7 Jul
Source: Bse
Annual report
Annual Report 2026
Source: Bse
Annual report
Annual Report 2025
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.